Key Stats for Dell Stock
- Current Price: ~$317 (May 28, 2026)
- Q1 FY27 Revenue: $43.8B, +88% YoY
- Q1 FY27 Adjusted EPS: $4.86, +214% YoY, beat Street estimate of $2.96 by ~64%
- Q1 FY27 AI Server Revenue: $16.1B; AI Backlog: $51.3B (record)
- Q1 FY27 EBITDA: $4.9B, +115% YoY
- FY27 Revenue Guidance (raised): $165B–$169B, up ~50% at midpoint, raised by $27B
- FY27 Adjusted EPS Guidance (raised): $17.90 (midpoint), up ~75% YoY
- TIKR Model Price Target: $341
- Implied Upside: ~7%
Dell Stock Just Delivered Its Biggest Quarter on Record
Dell Technologies (DELL) posted record Q1 FY27 revenue of $43.8 billion on May 28, surging 88% year-over-year and blowing past Street estimates by more than $8 billion, driven by an AI infrastructure demand wave that is accelerating rather than plateauing.
The headline number that made the quarter impossible to dispute: $16.1 billion in AI server revenue, up nearly 9x year-over-year, with $24.4 billion in new AI orders booked in a single quarter.
Dell stock’s Infrastructure Solutions Group posted $29 billion in revenue, up 181%, marking nine consecutive quarters of double-digit or better growth, while ISG operating income reached a record $3.1 billion, up 206%.
Jeffrey Clarke, CEO and Vice Chairman, stated on the Q1 FY27 earnings call that “our pipelines have never been healthier, they’re actually growing at greater than historical rates, which gave us confidence to raise the guide by $27 billion of revenue for the year,” connecting the guidance raise directly to a pipeline spanning neoclouds, sovereign governments, and large enterprises moving to lock in multi-year supply agreements.
Dell exited Q1 with a record $51.3 billion AI backlog, while its active AI customer count surpassed 5,000, up over 50% in the prior six months, with the pipeline described as multiples of backlog across every vertical and growing out five quarters.
The demand surge is not limited to AI servers: traditional server revenue grew 92% as enterprises refresh aging fleets, with the majority of the installed base still running 14th-generation or older hardware; CSG revenue rose 17% with commercial PC demand posting its seventh consecutive quarter of growth; and storage revenue climbed 8%, driven by five consecutive quarters of Dell IP demand growth above market.
Management raised full-year FY27 guidance to $165B–$169B in revenue and $17.90 in diluted EPS at the midpoint, representing increases of $27 billion and $5 in EPS from prior guidance issued 90 days ago, a magnitude of raise that reflects both Q1 strength and improved second-half visibility.
The primary constraint limiting an even larger raise is supply, not demand: memory (DRAM and NAND in particular) remains the binding factor, and Clarke stated the company expects to exit the year with meaningful AI backlog still on the books, providing a built-in demand floor heading into FY28.
Agentic AI is creating incremental pull-through for traditional CPU-based servers, with Clarke describing a new “harness” workload category where sequential, I/O-intensive agentic tasks run on CPU infrastructure alongside GPU clusters, expanding TAM in a segment the market had assumed was mature.
DELL Stock Operating Leverage Reaches a 20-Year High as Revenue Doubles
Dell delivered Q1 operating income of $4.2 billion against Q1 FY26 operating income of $1.7 billion, a 154% increase that moved operating margin from 7.1% to 9.7% year-over-year.
The driver was scale: operating expenses grew just 9% to $3.7 billion while revenue grew 88%, compressing OpEx as a percentage of revenue to 8.4%, the lowest level in more than 20 years, as CFO David Kennedy noted on the call.
The trajectory across the eight trailing quarters in the income statement shows a consistent direction: operating margins moved from 4.8% in the May 2024 quarter to 9.7% in the most recent quarter, with the only interruption being the May 2025 quarter at 5.5%, which reflected transitional AI server mix pressure before volume scaled enough to absorb the lower per-unit margin rate.
The tension in the income statement is AI mix: gross margins contracted to 18.1% in Q1 FY27, down from the 20%–22% range visible in FY25 quarters, because AI servers carry structurally lower gross margins than traditional servers or storage; management stated that excluding AI mix, gross margin rate was up year-over-year, meaning the rate compression is mechanical and reverses as Dell IP storage and services attach increases on the expanding AI customer base.
Is Dell Stock Undervalued in 2026? TIKR’s $341 Target and the Supply Timeline
TIKR’s base case values Dell s at approximately $341 by January 2031, implying around 7% total return from the current price of $317, or roughly 1.5% annualized over almost 5 years.
If AI server demand continues to scale toward the $60 billion full-year target and Dell IP storage attach rates climb alongside the 5,000-plus customer base, TIKR’s high case points to a stock price of approximately $511, implying around 61% total return or roughly 6% annualized.
If supply constraints persist through FY28 and margin expansion stalls at current levels, the low case produces approximately $321, implying just over 1% total return at roughly flat annualized returns.
The mid-case outcome of approximately $412 depends on the supply normalization timeline and management’s ability to sustain the operating leverage demonstrated in Q1.
How Did Dell Technologies Perform in Q1 FY27 Earnings?
Dell stock delivered adjusted EPS of $4.86 in Q1 FY27, beating the $2.96 Street estimate by approximately 64%, the widest beat in recent history.
Revenue reached $43.8 billion, up 88% year-over-year, with AI server revenue of $16.1 billion up nearly 9x. ISG operating income of $3.1 billion, up 206%, was the primary earnings engine, driven by record AI order intake of $24.4 billion and nine consecutive quarters of double-digit revenue growth. Management raised full-year guidance to $165B–$169B in revenue and $17.90 in EPS at the midpoint, increases of $27 billion and $5, respectively.
Is Dell Technologies Stock Undervalued?
TIKR’s base case values Dell Technologies stock at approximately $341 by January 2031, implying around 7% total return from the current price of $317, or roughly 1.5% annualized.
Five consecutive quarters of Dell IP storage demand growth above market and Q1 operating margins at a 20-year high of 9.7% support the base case trajectory.
The key variable is supply: if memory constraints ease through H2 FY27 and AI server volume continues to scale, the high case of approximately $511 is within reach; if supply delays persist and margin compression from AI mix is not offset by storage and services attach, the base case is the ceiling.
Should You Invest in Dell Technologies Inc.?
The only way to really know is to look at the numbers yourself. TIKR gives you free access to the same institutional-quality financial data that professional analysts use to answer exactly that question.
Pull up Dell Technologies Inc. stock and you’ll see years of historical financials, what Wall Street analysts expect for revenue and earnings in the quarters ahead, how valuation multiples have moved over time, and whether price targets are trending up or down.
You can build a free watchlist to track Dell Technologies Inc. alongside every other stock on your radar. No credit card required. Just the data you need to decide for yourself.
Access Professional Tools to Analyze DELL stock on TIKR for Free →
